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Hi, please just answer question D. Thank you. Case 12-66 (Part Level Submission) You have started working as a cost accountant for a firm that
Hi, please just answer question D. Thank you.
Case 12-66 (Part Level Submission) You have started working as a cost accountant for a firm that has only been in business for one month. The firm is able to buy a new type of biodegradable plastic at a fixed price of $100 per roll. The plastic is then cut and sealed to make garbage bags. Fixed factory overhead is estimated to be $125,000 per month. During this past month, 8,000 cartons of garbage bags were produced, which represents 80% of the activity volume. You are given the following information: Rolls of plastic used 40 Variable overhead incurred $61,000 Overhead efficiency $5,000 U variance Standard costs per carton of garbage bags: Labour hours 2 Wage rate $8 per hour Total overhead $20 Rolls of plastic 0.004 rolls Calculate the following: (a) Your answer is correct. Applied overhead per direct labour hour. Applied overhead per direct labour hour 10 (b) Your answer is correct. Standard direct labour hours allowed for units produced. Standard direct labour hours allowed for units produced 16000 SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT LINK TO TEXT (c) Your answer is correct. Activity volume. Activity volume 10000 cartons 20000 direct labour hours Activity volume. Activity volume 10000 | cartons 20000 direct labour hours SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT LINK TO TEXT (d) Predetermined fixed overhead rate. (Round answers to 2 decimal places, e.g. 52.75.) Predetermined fixed overhead rate carton per direct labour hour LINK TO TEXT LINK TO TEXT LINK TO TEXTStep by Step Solution
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